Build a new home, 185K for Land, 235K new house, about 420K Total
420K - 225K down = 195K Loan at aprox $1100 per month, rent home for $2000 = $900 per month
Home after it is built is worth about 450K - 500K
Duplex in Lemon Grove,
Purchase price 325K - 225K down = 100K loan at $550 per month
Actual Rental income $2400 - $550 = $1850 Income per month
I am not a RE agent, I do invest in RE,
Option 3, I could help you buy rental property at low prices for a consulting fee
In this current market, with 200K down, I could help you get $6600 - $7200 Gross Income
Down payment at 33% LTV, 400K in Loans, $2200 loan payments,
$4400 to $5000 Income per month
I LOVE your idea. My favorite investment property area in all of San Diego County is University Heights and Normal Heights. I should know, I own rental property there (houses, not condos). I highly recommend you consider the 2/1 bungalow configuration house and not knowing what your budget is, I can say with that down payment in the bank, you may be qualified to purchase two or three of them. I find them to be completely on sale and typically get about $1,650 for a 2/1 in tip top shape. This is right up my alley and a lot of people use me to purchase their investment property because of my first hand and well rounded experience. I can go on and on about this topic, so please call me if you want to talk.
Houses only! Stay away from condos in this area PLEASE.
I am excited for you!
Hillcrest is an excellent area for rental properties for 3 reasons:
1. The area has a high rental occupancy rate
2. It is close to downtown and Mission Valley and attracts high quality renters
3. There are a wide variety of properties that would fit your investor profile.
We have two CAP Rate calculators we could provide for free.
Lastly, we recommend our investor buyers use a Property Management company. The one we refer charges a flat $125/momth and does everything from clean up, painting, repairs, finding the tenants, collecting the rent, etc. They only charge you when the property is occupied.
We recommend do a lot of homework to make sure you understand all of the numbers and the tax implications.
Please let us know if we can be of further assistance.
Mark & Kari Shea
Shea Real Estate & Investment Group
Most people generally feel it is best to buy a single family home vs a condo if there are funds to do so. Your down payment is adequate to get cash flow in a lot of areas. I have buyers who are investing in condos near colleges such as SDSU where you can get a very nice one bedroom for $95k or 2 bedroom condo for about $130k. You could buy 2 with your downpayment! You could have a nice 3 bedroom home in parts of North County for $300,000. Rents of about $1700 per month would pencil out nicely. You could also have condos or a house near Cal State San Marcos. I do property management in North County and the fees quoted below are accurate. You have lots of good choices! Good luck.
Linda Fox Owner/Agent Keller Williams Realty
I would wait a little to buy here, especially if you want your property to cash flow. There are plenty of international opportunities with 8-10% cap rates in appreciating markets within 6 hours of flight time from here, i.e. you could be making $800-1000 per month for each 100,000 of downpayment. Contact me, we can discuss it further.